The current financial crisis has caused governments and central banks to compete,
who will achieve the biggest bail-out- and economic stimulus package including the
lowest interest rates. These are supposed to slow down the worldwide recession and
avoid a deflation. The current crisis has parallels to the “great depression” in the
1930th and therefore is also called the “great re-pression”.
The German Government has also installed a safety shield, worth 480 billion Euro for
financially suffering banks and financial institutions.
Thus, the Financial Markets Stabilization Act was created. It only took a week to pass
the bill which is unknown off in Germany and therefore shows the importance of this
law. It enables the government to act further than the German Basic Law would
allow.
The Commerzbank was the first German bank to claim a part of governments help.
This was due to high losses in the 4th quarter of 2008 and the acquisition of Dresdner
Bank.
[...]
Table of Contents
- 1. Introduction
- 2. Definition Merger and Acquisition
- 3. Facts and Figures Commerzbank and Dresdner Bank
- 3.1. Commerzbank
- 3.2. Dresdner Bank
- 3.3. Chances and risks of the merger
- 3.4. Chances
- 3.5. Risks
- 4. Acquisition process
- 4.1. Situation August 31st 2008
- 4.2. Situation November 28th 2008
- 4.3. Situation December 31rst 2008
- 4.4. Situation January 8th 2009
- 4.5. Situation January 12th 2009
- 4.6. Situation February 27th 2009
- 4.7. Situation May 15th 2009
- 5. Dresdner Kleinwort
- 6. Interest from the East
- 7. Allianz
- 8. Outlook
Objectives and Key Themes
This text analyzes the merger and acquisition (M&A) of Dresdner Bank by Commerzbank, focusing on the process, the financial implications, and the broader context of the 2008 financial crisis. The analysis explores the strategic rationale behind the merger, examines the challenges and opportunities presented by the integration of two major financial institutions, and considers the impact on the German and international banking landscapes.
- The impact of the 2008 financial crisis on the German banking sector.
- The strategic motivations behind the Commerzbank's acquisition of Dresdner Bank.
- The process of the M&A transaction, including key dates and decisions.
- The anticipated synergies and potential risks associated with the merger.
- The role of government intervention and financial stabilization measures.
Chapter Summaries
1. Introduction: This chapter sets the stage by discussing the global financial crisis of 2008 and its impact on the German banking sector. It highlights the German government's response, including the Financial Markets Stabilization Act, and introduces the Commerzbank's acquisition of Dresdner Bank as a case study within this broader context of economic turmoil and government intervention to stabilize the financial system. The chapter emphasizes the unprecedented nature of the crisis and the significant role of government intervention in preventing a complete collapse of the banking industry.
2. Definition Merger and Acquisition: This chapter provides a concise definition of mergers and acquisitions (M&A), highlighting their significance as key business transactions and their role in market consolidation. It establishes the M&A market as a significant indicator for sectoral consolidation and forecasting future business development, providing essential context for understanding the Commerzbank and Dresdner Bank merger within a wider economic framework. The chapter provides a foundational understanding of the core concepts of the M&A process.
3. Facts and Figures Commerzbank and Dresdner Bank: This chapter presents detailed information on Commerzbank and Dresdner Bank before the merger, including their size, employee numbers, and market share. It analyzes the respective strengths and weaknesses of both institutions, laying the groundwork for understanding the potential synergies and challenges of their integration. The chapter also highlights the risks and opportunities associated with the combination of the two banks, emphasizing the strategic considerations involved.
4. Acquisition process: This chapter chronologically details the acquisition process, tracing the key stages from August 31st, 2008 to May 15th, 2009. It offers a timeline of events, allowing for an in-depth understanding of the decision-making process and the factors influencing the transaction. The chapter provides a structured overview of the progression and significant milestones throughout the merger process.
5. Dresdner Kleinwort: This chapter focuses specifically on Dresdner Kleinwort, a subsidiary of Dresdner Bank, and its role in the overall M&A transaction. It likely examines the strategic considerations related to the integration of this specific entity into the newly formed Commerzbank, analyzing potential impacts and challenges. The chapter delves into the specifics of this important subsidiary.
6. Interest from the East: This chapter explores external factors affecting the merger, likely focusing on potential interest from Eastern European investors or other international stakeholders. It examines the geopolitical and economic dimensions influencing the deal, placing the M&A within a broader context. The chapter provides perspective on the geopolitical and economic landscape impacting the merger.
7. Allianz: This chapter discusses the role of Allianz, the previous owner of Dresdner Bank, in the merger. It analyzes the strategic implications for Allianz, considering their motivations for selling Dresdner Bank and their post-merger relationship with the newly formed Commerzbank. The chapter focuses on the perspective of one of the major stakeholders involved in the process.
Keywords
Mergers and Acquisitions (M&A), Commerzbank, Dresdner Bank, Financial Crisis 2008, German Banking Sector, Synergy Effects, Market Consolidation, Government Intervention, Financial Stabilization, Risk Management.
Commerzbank's Acquisition of Dresdner Bank: A Comprehensive Analysis - FAQ
What is the main topic of this text?
This text provides a comprehensive analysis of the merger and acquisition (M&A) of Dresdner Bank by Commerzbank in 2008-2009. It examines the process, financial implications, strategic rationale, and broader context within the 2008 financial crisis.
What are the key themes explored in the analysis?
The analysis explores the impact of the 2008 financial crisis on the German banking sector, Commerzbank's strategic motivations for the acquisition, the M&A process timeline, anticipated synergies and risks, and the role of government intervention.
What information is included in the "Table of Contents"?
The table of contents outlines the structure of the analysis, covering an introduction, definitions of mergers and acquisitions, details on Commerzbank and Dresdner Bank, a chronological account of the acquisition process, sections on Dresdner Kleinwort, external interests (likely Eastern European), Allianz's role, and a concluding outlook.
What is the purpose of the chapter summaries?
The chapter summaries provide concise overviews of each section's content, offering a quick understanding of the key information and arguments presented in each chapter.
What are the key dates mentioned in the acquisition process?
The acquisition process is detailed chronologically, mentioning key dates such as August 31st, 2008, November 28th, 2008, December 31st, 2008, January 8th, 2009, January 12th, 2009, February 27th, 2009, and May 15th, 2009.
What is the significance of Dresdner Kleinwort and Allianz in this analysis?
Dresdner Kleinwort, a subsidiary of Dresdner Bank, is analyzed in terms of its integration into the new Commerzbank. Allianz's role as the previous owner of Dresdner Bank and its strategic decisions are also examined.
What is the role of government intervention in this M&A?
The analysis explores the significant role of government intervention and financial stabilization measures in response to the 2008 financial crisis and its impact on the Commerzbank/Dresdner Bank merger.
What are the key words associated with this analysis?
Key words include: Mergers and Acquisitions (M&A), Commerzbank, Dresdner Bank, Financial Crisis 2008, German Banking Sector, Synergy Effects, Market Consolidation, Government Intervention, Financial Stabilization, and Risk Management.
What is the overall objective of this analysis?
The analysis aims to provide a structured and professional examination of the Commerzbank's acquisition of Dresdner Bank within the context of the 2008 financial crisis, analyzing the strategic decisions, financial implications, and broader economic consequences.
Who is the intended audience for this analysis?
The intended audience is likely academics and researchers interested in mergers and acquisitions, the German banking sector, and the impact of the 2008 financial crisis. The structured and professional nature of the analysis suggests a focus on scholarly use.
- Quote paper
- Philipp Gauß (Author), 2009, M & A of the Commerzbank and Dresdner Bank, Munich, GRIN Verlag, https://www.grin.com/document/138062
